If you're a college student who has a mailing address, you have undoubtedly been targeted by credit-card companies anxious to share the outstanding news that you have been pre-approved! Or, wooing you with promises of reward points, no annual fees, low introductory interest rates, etc.
Credit card companies have very deep pockets and very large marketing departments. They have very deep pockets because many (most?) customers who take them up on their enticing offers become ensnared in a nightmarish scenario of never-ending monthly payments on ever-increasing balances. You're in college to learn and, ultimately, embark on a meaningful career that allows you to secure your financial future. Credit cards can derail that goal before you even get started.
Credit card marketers try to reel you in with bold, colorful promises and offers. The real information is hidden away in tiny print. The bottom line is, those attractive credit card offers only last for a short period of time. To get you to sign up for a credit card, companies often offer a very low introductory interest rate (sometimes, they even offer a period of zero interest.)
The problem is, the vast majority of consumers still carry a balance once the introductory rates end. That's when the adjustable interest rate kicks in. A high-interest rate. Suddenly, you're swept up in an endless cycle of payments. Maybe you can only manage the minimum payment each month. That means the balance you owe on your card grows each month - even if you're not buying anything new. You're paying, but your balance is growing. Soon, you're carrying thousands of dollars in debt. This affects your credit score now, and after you graduate. If you get a credit card in college, you could still be trying to pay it off long after you graduate.
College students are prime targets for credit-card companies because they know you're often low on cash. There's a safer way to access extra cash and build up your credit history. Boro specializes in offering personal loans for college students. A personal loan gives you access to more credit, often at a lower interest rate than a credit card.
Most importantly, instead of falling into the credit card trap of unlimited payments, with a Boro loan, you know upfront how many payments you need to make, how much each payment will be, and when your loan will be paid off if you make those payments. Unlike a credit card, there is no uncertainty associated with a personal loan. A loan is a much more responsible way to access extra cash.